Bad loans of Indian banks can go up to 3.25-3.75% of total advances as compared to 2.17% as of March 2009. This was reported by credit rating agency, ICRA. The analysis used the functioning of 43 commercial banks, both public sector as well as major private sector banks, comprising 90% of the market.
Pranab Mukherjee’s decision to allow companies and NBFCs to set up private banks in the country has raised the hopes of many like ADAG and Aditya Birla Nuvo. But RBI has expressed its reluctance to ease its norms. Last time RBI has permitted new private banks was in 2002 to Kotak Mahindra Bank and Rabo… Read More »
Jyotivardhan Jaipuria, who is MD & head of India research, Bank of America-Merrill Lynch said that he thinks the banking sector will be an outperformer this year. As the sector is dependent on the economy, it will gain from higher growth. The 3 main factors affecting this sector are credit expansion, lower non-performing loans and… Read More »
Maruti Suzuki Chairman R C Bhargava has accepted the company had erred by not informing the press about the recall of 100,000 A-Star cars, which started last December. Bhargava said: “We slipped up and will be calling a press conference in the next two-three days to explain things. On hindsight, we should have informed the… Read More »
The basic excise duty has been increased from 8% to 10%. This will have a compounding effect on almost all goods. By the time this article is written, there is some news that the petrol prices will be increased by about Rs.2.85/liter. Car makers have told that they will be increasing the prices after the… Read More »
The major cause of celebration was that people earlier in the 30% slab (those currently earning between 5-8 lakhs) have now been shifted to the 20% rate of income tax and those in the 3-5 lakh group have shifted to a lower 10% rate of income tax. Add to this the deduction of Rs 20000… Read More »
The key element of the budget that creates an income of almost Rs.10,000 crores for the Government and increases inflation in a big way is the introduction of Customs duty on crude and introduction of excise duty of Re.1/liter on petrol. This announcement in fact lead to heated objections in the Parliament and the budget… Read More »
By far the most attractive thing in the Budget 2010 for individuals is the increase in the income tax slab limits. Though the entry level slab for income tax has not been changed from Rs.1.6 lakhs, there is a considerable jump in the other slabs. As per the words of the Finance Minister, this proposal… Read More »
Apart from this the finance minister has also given an additional deduction of Rs 20000 for any investments in Infrastructure bonds. This will be over and above the Rs 1 Lakh we already have. Thus meaning we could even save up to ten percent of our income in case we are in the lower end… Read More »
Banks will required to lend at least Rs 1,68,000 crore in less than 50 days to reach the 16% increase in credit set by RBI for the present fiscal. As year on year credit expansion up to February 12 is just 9.9% compared to the targeted 16%, it is quite doubtful that banks will achieve… Read More »